About rat race home security

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Reference no: EM132044676

Use the following information about Rat Race Home Security, Inc. to answer the questions:

Average selling price per unit $349.

Variable cost per unit $196

Units sold 415

Fixed costs $9,827

Interest expense 19,794

Based on the data above, what will be the resulting percentage change in earnings per share of Rat Race Home Security, Inc. if they expect operating profit to change 7.4 percent?

(You should calculate the degree of financial leverage first).

Reference no: EM132044676

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